In the late 1990s, the #1 area of concern in India was the fiscal crisis. As an example, here is a gloomy piece that I wrote in 2001. A remarkable amount of progress has been made on that front. Tax policy is more rational; tax administration has improved; the FRBM Act has tied down the government; the Twelfth Finance Commission has triggered good improvements at the state governments also. In Economic Times today, Mythili Bhusnurmath talks about developments at the state governments.
In my reckoning, the fiscal consolidation is roughly half done. We aren't out of the woods yet, but a good down payment is visible. As Mythili points out, the focus has now shifted to monetary policy, where a comparable transformation of law and institutions has not begun.